5Things To Watch as Congress Grills GM Over Recall

General Motors Chief Executive Mary Barra and David Friedman, the acting head of the National Highway Traffic Safety Administration, are on the menu for a House subcommittee hearing demanding answers to why GM recalling millions of cars with defective ignition switches for nearly a decade. The switches installed in 2.6 million cars built from 2003-2011 could turn off if drivers jostle the keys, disabling airbags. GM has linked 13 deaths to crashes in which airbags didn’t deploy. Lawmakers want to know why GM didn’t own up to the problem years ago, and why the NHTSA missed clues pointing to the defect.

1Who's to Blame?

Finger-pointing may not be dignified, but it’s inevitable in a situation where, by Ms. Barra’s own admission, something went wrong. The NHTSA’s Mr. Friedman has already made clear in prepared testimony he faults GM for not supplying his agency with information about the ignition defect and its consequences. But NHTSA officials will be under pressure from lawmakers to explain why twice the agency came close to a decision to investigate crashes in which the airbags didn’t function in now-recalled cars, and decided not to pursue the matter.

2What Did They Know, and When?

In her prepared testimony, Ms. Barra says she still doesn’t know why lower level GM managers decided not to fix ignition switches that they knew were prone to slipping out of the on position. GM hasn’t disclosed how far up the chain of command responsibility goes for a decision to reject a fix proposed in 2004 as too costly and time consuming. The auto maker also hasn’t named names of those who chose not to act when company engineers found more evidence of trouble in 2007 and 2009, and why an internal investigation that began in 2011 didn’t result in a recall until February 2014.

3Do Regulators Have Big Data, or Disorganized Data?

The NHTSA gets copious amounts of data about accidents and vehicle problems from auto makers, consumers, police agencies and other sources. But in the case of the GM ignition switch recall, the agency says it couldn’t see a pattern. In hindsight, independent groups such as the Center for Auto Safety have said red flags were there — but NHTSA officials missed them. Whether NHTSA has the right tools and the right talent to effectively analyze the information it collects was a hot issue in congressional probes of past recall scandals, including the 2010 Toyota sudden acceleration case. Lawmakers are already raising the questions anew.

4What About the Drivers?

GM’s government-backed bankruptcy in 2009 shifted liability for accidents that occurred before the bailout to what is commonly referred to as Old GM, which has little to offer. The New GM, run by Ms. Barra, is solvent — and has taken on responsibility for warranty claims and recall repairs for cars built pre-bankruptcy. Ms. Barra is likely to face many questions today and tomorrow about whether she is willing to offer more than apologies and empathy for people who’ve lost loved ones in pre-bankruptcy accidents, or who feel GM owes financial compensation for selling them a car with a dangerous defect.

5Does Congress Have a Plan?

The GM recalls have prompted a rare show of bipartisanship among Republicans and Democrats in Congress. House Energy and Commerce Committee chairman Fred Upton (R.-Mich.) is a vigorous critic of most efforts to expand government regulation of the private sector. The committee’s ranking member, California Democrat Henry Waxman, has long argued the case for stronger federal watchdogs. Both are now united in frustration with GM and the NHTSA. Mr. Upton was the lead author of the last big piece of auto safety legislation to pass Congress, the TREAD Act of 2000. He has left the door wide open to strengthen that law. Some Democrats say it’s time for Congress to allow regulators to exact a much steeper price — including strong criminal penalties — from auto makers that don’t act in a timely way to fix dangerous defects.

Auto makers have opposed efforts to criminalize delays in reporting defects or ordering recalls. In 2010, outrage over Toyota’s mishandling of defects tied to sudden acceleration dissipated, and legislation to strengthen safety regulations died on Capitol Hill. How Ms. Barra performs in testimony today and Wednesday could have a big influence on what lawmakers do this time.